Clearing

[Former Member]

Hello

What is Account Clearing

What is Post with clearing

Can anybody explain this with examples:

Regards,

Raghu

[former_member188826]

Clearing : An analogy to explain clearing may be, think of the concept of archiving. If you do not want to see any line items that does not add value to you, you simply archive it. Similarly, we keep only those transactions of an account, be it GL, Customer or Vendor as open item.

An customer invoice which is received or vendor invoice that is paid, need not flood the information system. These are technically cleared and do not appear unless called for.

[Former Member]

Hi

Post with clearing :

An invoice is made to the customer it shows as open item in customer account when payment made against that open item both items will be cleared.

TCode : F-04

Account Clearing :

A Credit memo passed against an invoice in customer account both items are open we have to manually clear those items.

TCode : F-44,F-32

[Former Member]

An example of posting with clearing :

Ÿ An invoice posted to a customer's account.

This invoice is regarded as an open item because at this point it is unpaid.

Ÿ The customer pays the invoice and the payment is allocated to it.

Ÿ The invoice is cleared with the payment and the resulting balance is zero.

An example of account clearing:

Ÿ Manually clearing an open invoice with a related credit memo and payment on account.